General News
26 June, 2025
Insurance premiums expensive for most electric vehicles
AUSTRALIANS insuring electric vehicles continue to be slugged with higher premiums, according to new research by Compare the Market showing the bill for some popular models can be more than $3000.
The car insurance comparison experts quoted comprehensive car insurance policies for 20 popular and notable hybrid and electric vehicles across 11 well-known insurance brands and six underwriters.
The first iteration of the bi-annual index revealed that a full EV was quoted to cost $2134 on average to comprehensively insure, while hybrid and plug-in hybrid EVs were quoted to cost $1649 on average.
Compared to quotes for identical policies from October 2024, premiums for both the Tesla Model Y RWD and Model 3 RWD EVs decreased six per cent on average. Meanwhile quotes for the Toyota RAV4 GX and Corolla Ascent Sport hybrids were up around two per cent on average.
A Tesla Model Y RWD was $3109.81, the Tesla Model 3 RWD was $3334.04 and a BMW iX1 eDrive20 was $2974.69. The cheapest was the BYD Dolphin Essential at $1425.13.
A range of factors influence car insurance premiums, including the rising cost of repairs due to pricier parts and labour – which account for around 60 per cent of claims expenses, according to the Insurance Council of Australia.
The most expensive hybrid and plug-in hybrid was the BYD Shark Premium ($2071.36) while the least costly was the Hyundai Kona Hybrid ($1471.19).
Compare the Market’s economic director David Koch said higher premiums could be prohibitive for aspiring EV owners but urged motorists not to be disheartened before running a comparison.
“What we found was a shocking difference between quotes from different insurers that could mean some motorists end up paying hundreds – sometimes thousands – more,” he said.
“The quoted difference between the cheapest and most expensive insurer for the Tesla Model 3 sedan was a whopping $3100 for a similar policy. For a cheaper EV like the MG 4 hatchback, the delta was $836. With price gaps that big, it pays to shop around.”
Amid the booming popularity of hybrid and plug-in hybrid models, electrified vehicles were also included in the new Compare the Market EV index.
“Hybrids were considerably cheaper to insure than a full EV on average, despite featuring both electric and combustion engine components,” Mr Koch said.
“However, with all the hybrid quotes costing over a grand, they still aren’t as cheap to insure,” he said.
